Investor Compensation Scheme (Amendment) Regulations, 2011

L.N. 62 of 2011

INVESTMENT SERVICES ACT

(CAP. 370)

Investor Compensation Scheme (Amendment) Regulations, 2011

IN exercise of the powers conferred by article 12 of the

Investment Services Act, the Minister for Finance, the Economy and

Investment, acting on the advice of the Malta Financial Services

Authority, has made the following regulations:-

(1) The title of these regulations is the Investor

Compensation Scheme (Amendment) Regulations, 2011, and these

regulations shall be read and construed as one with the Investor

Compensation Scheme Regulations, hereinafter referred to as "the

principal regulations".

(2) These regulations shall be deemed to have come into force

on the 1st January 2011.

Sub-regulation (1) of regulation 11 of the principal

regulations shall be amended as follows

(a)

for the words "shall participate in and contribute to

the Scheme, including branches of licence holders operating in

other countries:", there shall be substituted the words "shall

participate in and contribute to the Scheme:"; and

(b) in the first proviso thereto, for the words "providing

investment services" there shall be substituted the words

"licensed to provide investment services".

For paragraph 2 of the Second Schedule to the principal

regulations there shall be substituted the following

"2.

Fixed Contribution

(a) Every licence holder which participates in the

Scheme shall pay a Fixed Contribution as follows

(i) €2,911.72 in the case of Category 2

Investment Services Licence Holders; and

(ii) €17,470.30 in the case of Category 3

Investment Services Licence Holders.

(b) The fixed contribution that shall be payable

by a licence holder during its first calendar year of

participation, shall be calculated in accordance with the

following formula

contribution x days

Where

"contribution" means the fixed contribution

as provided for in paragraph (a);

"days" means the number of days that elapse

from the day when the said licence holder obtains a

Category 2 or a Category 3 licence, as the case may

be, up to the end of that calendar year.

(c) The additional fixed contribution that shall be

payable during the calendar year in which a licence holder

upgrades from a Category 2 to a Category 3 licence, shall

be calculated in accordance with the following formula

difference x days

Where

"difference" means the difference between

the fixed contribution for Category 3 and the fixed

contribution for Category 2 investment services

licence holders as provided for in paragraph (a);

"days" means the number of days that elapse

from the day when the said licence holder upgrades

to a Category 3 licence, up to the end of that

calendar year.

(d) Payment of the Fixed Contribution to the

Scheme shall be made by the 30 April of each year or

within thirty calendar days from the date when the licence

holder shall become liable to participate in and contribute

to the Scheme, as the case may be.

(e) A licence holder which has ceased to be a

participant of the Scheme or which has downgraded its

licence at any time during a calendar year shall not be

entitled to a refund of any contributions paid to the

Scheme."

€0.28